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Michael McLarney, President & Editor mike@hardlines.ca Beverly Allen, Publisher bev@hardlines.ca John Caulfield, Contributing Editor Phone: 416-489-3396 |
September 29, 2008, Vol. xiv, #36 |
In This Issue | |||||||||||||||||||||
“The secret to staying young is to live honestly, eat slowly, and lie about your age.” —Lucille Ball (American actress, 1911-89) |
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Home Hardware shows tough(er) side at latest market | |||||||||||||||||||||
ST. JACOBS, ON — The mood was positive, and dare we say, almost feisty, at the latest dealer market held here last week for Home Hardware Stores’ 1,000-plus dealer members. Dealers were remarkably upbeat, regardless of which part of the country they hailed from, and in spite of concerns, especially among vendors, about a growing economic slowdown.The positive mood was enhanced by a number of new initiatives, the most striking being a new brand position — and new slogan to support it. “Home owners helping homeowners” takes the independence of the Home Hardware dealers and puts it front and centre as a competitive advantage. That independence signifies greater knowledge and better service among consumers surveyed recently, something that Home wants to highlight as its stores compete alongside Wal-Mart and the home improvement big boxes.
“Our dealers own the store. They care more,” says Jack Baillie, director of marketing for Home Hardware. “We are realizing that people believe independents offer more knowledge and better service. So how do we relay the message that Home Hardware is not a big organization, but a network of true independents?” The answer, he points out, is reflected in this new strategy and new slogan.
Home’s former slogan, “Help is close to home”, ran for 15 years. Before that, the “Home of the handyman” tag line endured for a quarter of century. As for the new slogan, “the dealers absolutely love it,” Baillie says.
Another program that underscores a scrappier attitude at Home Hardware is its price match promise, whereby a dealer will match a local competitor’s advertised price on an identical in-stock item. “We want our customers to know that we value their business,” Baillie says. The company has also re-launched its website and revamped its “Home at Home” consumer magazine with a more upscale look.
Besides dealers and their families, the market played host to more than two dozen “prospects”, independents who are considering joining Home. Their ranks included a number of high-profile dealers from other leading banners and buying groups in Canada, reflecting new aggressiveness of Home’s recruitment efforts, under Dunc Wilson, who came over recently from BMR to form a new dealer development team.
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Lowe’s faces local resistance to expansion | |||||||||||||||||||||
KINGSTON, ON — The decision to turn down Lowe’s Canada’s bid for an industrial site on the west side of this city has become a hot topic for debate. The point of contention is the land that Lowe’s wants to develop. Even though it’s zoned industrial, some believe the opportunities to attract a manufacturing plant are slight.However, the property is surrounded by other retailers, including Wal-Mart and Canadian Tire. The application by Lowe’s took a year to be decided. A similar application in nearby Belleville reportedly took only four months. With seven stores already in Canada, Lowe’s plans to open stores here before year’s end in Windsor, Belleville, and Whitby, ON. Barrie is also slated to open either this year or next. | |||||||||||||||||||||
Lowe’s strategies include fewer store openings for next year | |||||||||||||||||||||
CHARLOTTE, NC — At its annual conference for analysts held here last week, Lowe’s outlined its strategies as it attempts to gain market share amidst the severe downturn in the U.S. economy. These strategies include focusing focus on initiatives such as marketing, logistics, distribution, and store operations. The world’s second-largest home improvement retailer expects to end this year with about a 1% increase in sales, and with approximately 120 new stores. But an uncertain economic future over the next 18 months has led Lowe’s to scale back those store openings for next year by 5%.Greg Bridgeford, Lowe’s executive vp, said that 26% of its store openings in 2009 will use a 103,000 sq.ft format, compared to 7% of the store openings this year. Lowe’s standard big box is 117,000 sq.ft. By going smaller, Bridgeford said Lowe’s will save $1.9 million per store. In fiscal 2009, the company will now open between 75 and 85 stores, compared to its previously announced plan to open as many as 120 units that year. The retailer said that by opening fewer and smaller stores, it would reduce the amount of retail square footage it will add in 2009 by 8%. “It is prudent to remain cautious in our 2009 outlook,” said Lowe’s CFO Robert Hull. Still, the company continues to assert that it can more than double its projected earnings per share for 2008 over the next five years. | |||||||||||||||||||||
Quebec consumer confidence shows signs of flagging | |||||||||||||||||||||
MONTREAL — Quebec consumers plan to spend less. That’s the key result of a survey by the Conseil quebecois du commerce de detail/Retail Council of Quebec (CQCD). The survey, on Quebec consumer spending trends and the buying habits of Quebecers, was conducted by Altus Geocom on behalf of the CQCD.While more than half (59%) of households perceived their financial situation to be unchanged over the last six months, 17% have seen an improvement and 24% have noted a deterioration. The rise in the cost of living was the main reason mentioned by households reporting deterioration in their financial situation over the last six months; it was mentioned by 63% of respondents in that group, compared 38% last year, while 25% mentioned a reduction in employment income as the principal reason for the deterioration. Three-quarters of households report that their financial situation has remained the same (59%) or even improved (17%), the proportion of Quebec households whose financial situation has deteriorated has almost doubled (24%) compared with the same time last year (10%). Quebec households are optimistic about their finances for the near, with 83% expecting their financial situation to remain unchanged (59%) or even improve (24%) over the next six months. However, among the 13% of households who anticipate a downturn, more than three-quarters expect a rise in the cost of to become the main cause of the expected decline in their financial situation. Hardware and renovation products should augur better than other consumer expenditures in the next six months, however. Quebec consumers plan to spend 6% more on hardware/renovation items, and 20% less on furniture and household items. | |||||||||||||||||||||
Shanghai show grows despite China’s economic challenges | |||||||||||||||||||||
SHANGHAI — Asia’s largest hardware and DIY trade show, China International Hardware Show (CIHS 2008), powered by PRACTICAL WORLD, ended its run here on Sept. 17-19. Held over three days, this year’s event exceeded a record-breaking one million square feet.2,000 local and foreign exhibitors from a total of 19 countries, including Germany, Italy, Japan, the U.S., UK, Australia, Spain, and Singapore, Korea, participated this year, a 10% increase from last year’s 1,821. A total of 3,000 international and 31,000 domestic visitors attended the show, a 4% increase from 2007. The show enjoyed healthy attendance despite tough economic challenges facing the Asian market over the past year. Demand for hardware products slowed as costs of raw materials and manpower increased, the value of China’s currency appreciated, and tax rebates for exports dropped. As a result, many export companies, especially those providing lower-cost commodity products, had to struggle to survive, while independent brands of high value-added products had to contend with reduced profitability. Attendance by domestic buyers, who make up 90% of visitors, increased by 7% this year. Overseas buyers included Home Depot, Lowe’s Global Sourcing, Kingfisher Group, and B&Q. China International Hardware Show will be held in Shanghai next year Sept.16-18, 2009. For more info, click here. | |||||||||||||||||||||
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Does your company have a strategy to grow as the economy slows down? Come to the 13th Annual Hardlines Conference for the competitive information you need to grow in the months ahead. Learn from the industry’s best: Oct. 23-24, 2008 in Toronto. Click below for more info. —Beverly |
Speakers - Registration
Questions contact Brady at 416-489-3396 |
COMPANIES IN THE NEWS |
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PEOPLE ON THE MOVE |
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ECONOMIC INDICATORS |
Retail sales were up 0.1% in July from June, despite a 0.6% drop in the automotive sector, with healthy increases in home centres and hardware stores, up 1.1% from June to July and up 6.4% from July 2007. Building centres and outdoor home supply stores were up 4.8% year-over-year. (Stats Canada)Consumer prices rose 3.5% from August 2007 to August 2008, largely driven by higher prices for gasoline. From July to August, the Consumer Price Index was up 0.2%. (Stats Canada) |
NOTED… |
The 9th annual Garden & Florist Expo will be held Oct. 21-22, at the Toronto Congress Centre, Toronto, Canada to get the tools to the trade. With over 300 companies showcasing hundreds of new products for the 2009 buying season, created in partnership by Landscape Ontario and Flowers Canada – Toronto Chapter. The Expo will be preceded by education and networking events, Oct. 20. Register here. |
Resumés |
Posted July 14 Highly effective relationship management skills with a track record of developing and executing programs effectively. Strong strategic thinking and management background. Solid propensity for team building, coaching, mentoring and developing others. A competitive manager with a proven sales, marketing, merchandising and, leadership record. |
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